Recording and Assessing the Effects of Installment LoansOn December 31, Dehning, Inc., borrowed $300,000 on an 8%, 10-year mortgage note payable.The note is to be repaid in equal quarterly installments of $10,967 (beginning March 31).a. Prepare journal entries to reflect (1) the issuance of the mortgage note payable, (2) the payment of the first installment on March 31, and (3) the payment of the second installment on June 30.Round answers to the nearest whole number.General JournalDate12/31Description3/31 Interest expense6/30 Interest expenseO O0Interest Expense0OO◆◆0◆◆◆b. Post the journal entries from part b to their respective T-accounts.Cash0O O0Debit0000000000CreditTransaction12/31 Borrowed on mortgage note payable $3/31 Payment on note6/30 Payment on notePlease answer all parts of the question.00000000Mortgage Note Payable000O O0c. Record each of the transactions from part b in the financial statement effects template. Use negative signs with answers, when appropriate.Balance SheetIncome StatementCash Asset + Noncash Assets0 $= Liabilities + Contr. Capital + Earned Capital Revenue$0 $00 $0 $000000000000Expenses = Net income$$0000

Mortgage Notes Payable is defined as the promissory note that is secured by any asset, where the…

Recording and Assessing the Effects of Installment Loans On December 31, Dehning, Inc., borrowed $300,000 on an 8%, 10-year mortgage note payable. The note is to be repaid in equal quarterly installments of $10,967 (beginning March 31). a. Prepare journal entries to reflect (1) the issuance of the mortgage note payable, (2) the payment of the first installment on March 31, and (3) the payment of the second installment on June 30. Round answers to the nearest whole number. General Journal Description Date 12/31 3/31 Interest expense 6/30 Interest expense ◆ Interest Expense 0 + 0 0 0 Debit 0 0 0 b. Post the journal entries from part b to their respective T-accounts. Cash 0 0 0 0 0 0 0 Credit 0 0 0 0 0 0 0 0 Mortgage Note Payable 0 0 c. Record each of the transactions from part b in the financial statement effects template. Use negative signs with answers, when appropriate. Balance Sheet Income Statement = Liabilities + Contr. Capital + Earned Capital 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 Transaction Cash Asset + Noncash Assets 12/31 Borrowed on mortgage note payable $ 0 $ 3/31 Payment on note 0 6/30 Payment on note 0 Please answer all parts of the question. 0 0 0 0 0 Revenue 0 0 0 = Expenses - Net income 0 $ 0 0 $ 0 0 0

Recording and Assessing the Effects of Installment Loans On December 31, Dehning, Inc., borrowed $300,000 on an 8%, 10-year mortgage note payable. The note is to be repaid in equal quarterly installments of $10,967 (beginning March 31). a. Prepare journal entries to reflect (1) the issuance of the mortgage note payable, (2) the payment of the first installment on March 31, and (3) the payment of the second installment on June 30. Round answers to the nearest whole number. General Journal Description Date 12/31 3/31 Interest expense 6/30 Interest expense ◆ Interest Expense 0 + 0 0 0 Debit 0 0 0 b. Post the journal entries from part b to their respective T-accounts. Cash 0 0 0 0 0 0 0 Credit 0 0 0 0 0 0 0 0 Mortgage Note Payable 0 0 c. Record each of the transactions from part b in the financial statement effects template. Use negative signs with answers, when appropriate. Balance Sheet Income Statement = Liabilities + Contr. Capital + Earned Capital 0 $ 0 $ 0 $ 0 $ 0 0 0 0 0 Transaction Cash Asset + Noncash Assets 12/31 Borrowed on mortgage note payable $ 0 $ 3/31 Payment on note 0 6/30 Payment on note 0 Please answer all parts of the question. 0 0 0 0 0 Revenue 0 0 0 = Expenses - Net income 0 $ 0 0 $ 0 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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